Topic: Complete both questions in this assignment. The first question requires you to read and analyse and respond to the question asked. The second question requires you to read, research and write an appropriate response to the question asked.
1. Cassie is employed by a business called MME which has its head office in Brisbane. MME was considering opening an office in Ballarat. Cassie has a role of Business Development Manager for MME, a role which is prominently displayed on all her stationary and business cards. Cassie was instructed to visit the central business district of Ballarat, survey relevant business opportunities, evaluate competitors and make enquiries on retail premises before reporting back to head office with a recommendation. When Cassie arrived in Ballarat, she surveyed relevant local business opportunities, evaluated competitors and enquired on retail premises including detailed enquiries about one particular property owned by Theo. Pat is the owner and chief executive of MME. At the same time Cassie is in Ballarat, Pat also made enquiries with Theo over the telephone about the same property, Pat not knowing that Cassie was about to make her own detailed enquiries. Pat indicated to Theo that Cassie will be in contact to inspect the premises with a view to committing to a lease. Cassie inspects Theo’s property in central Ballarat and feels that its heritage ‘look and feel’ and central location make it best suited to MME so she executes in writing a lease arrangement with Theo on behalf of MME. When the copy of the executed lease arrives via email in Brisbane alongside with invoices for office equipment, Pat calls and questions Cassie. Pat ultimately refuses to agree to the terms of the premises and accordingly has the office equipment order cancelled. Theo takes legal action against MME. Identify the legal issues arising in agency from this scenario. Where relevant you should justify and support your answers with reference to statute and/or case law. (20 marks)
2. Treat this question as separate from the above and answer this question as a research essay question. In the context of this course, discuss the relationship between agency and contract law